Are you looking for the best jurisdiction for your offshore company registration? Let us take a closer look at Belize LLCs. Focus on the reasons and great incentives to open a LLC rather than an IBC. Consider the minimum requirements for Belize LLC formation. Take advantage of our experts’ package of customized services in 2023. This window of opportunity will allow you to accomplish your goal remotely, at a competitive price, within a reasonable timeline.
Belize is one of the best jurisdictions for offshore company formation. Our experts recommend a Limited Liability Company (LLC) as the most beneficial business structure for startup businesses in Belize. Here are some of the reasons:
- Belize LLCs that do not engage in income-generating activities in Belize are exempt from local taxes which include income tax, business tax, withholding tax, asset tax, gift tax, capital gains tax, distributions tax, inheritance tax, estate duty on assets, or income generated from outside of Belize
- Belize LLCs are exempt from filing annual tax returns, financial statements, tax returns, or holding annual general meetings
- Members’ liability is limited by the value of their ownership shares
- A wide range of options are possible for planning the company structure and activities
- 100% foreign ownership is allowed
- There are no requirements for minimum authorized capital for a Belize LLC, so it can be as low as $1
- Belize LLCs do not need to apply for a TIN
- Belize LLCs are not subject to any economic substance requirements.
As you can see, Belize LLC formation can bring you tons of great benefits: reliable asset protection, reasonable costs, privacy-related advantages, minimal tax burden.
You are welcome to book a free consultation to discuss your questions and fee-based customized services to open your Belize LLC remotely.
The cost of Belize LLC formation
Our professional services of the Belize LLC formation are available at the price starting from 2950 USD. The package includes:
- Certificate of formation
- Articles of Formation and Bylaws
- Appointment of the First Director and executive officers
- Consent to act as the director
- Inaugural resolution
- Register of directors
- Register of members
- Ownership Certificate(s)
- Company registration
- State registration fee
- Registered office (registered address) in Belize
- One set of original corporate documents
- Worldwide courier delivery of Belize LLC registration documents
Optional services that are not included in the minimum package can be selected and paid separately. For example, you can order our assistance in the opening of an additional bank account, recruitment/extension of services of a professional director, a Good Standing Certificate for the registry, notary services, etc.
The complete menu of our primary and optional services of the Belize LLC formation is available on request.
The added value of Belize LLCs compared to IBCs
A Limited Liability Company (LLC) is an offshore company with a flexible structure that brings together the features of a corporation and a partnership.
Please note that Belize LLCs are regulated by the International Limited Liability Company Act (2011), which applies only to international LLCs formed by non-residents of Belize.
The main advantages of LLCs over IBCs in Belize are as follows:
- Unlike IBCs, LLCs are not required to apply for a TIN
- They do not have to meet any economic substance requirements in Belize
- Accounting records and reports may be kept outside Belize – in any country
- The shareholders’ meetings may be held outside Belize
- In the new rules and regulations of the OECD or the EU, an LLC is not mentioned as a risky form of business
- A Limited Liability Company in Belize can be founded by 1 non-resident person
- There are no requirements for a minimum amount of the share capital
- LLCs are allowed to recruit professional directors and shareholders in Belize.
The above-mentioned advantages are really impressive, considering that since 2019, all Belize IBCs (international business companies), whether they are local tax-residents or non-tax residents, are now liable for income taxes for carrying out a trade, business, or service inside Belize. IBCs are required to file annual tax returns. They need to keep accounting records and audited financials in Belize.
Our competitive offer to help you with Belize LLS formation is the best on the market in 2023.
Benefits of LLC formation in Belize
LLCs and IBCs share some common features that make them the most popular forms of legal entities in Belize. However, thanks to its hybrid structure, an LLC structure remains more flexible and robust than an IBC in terms of corporate policies (including taxation).
- The liability of Belize LLC members is proportionate to the amount of their contribution/share in the company and does not apply to other members or to the business itself.
- All corporate matters are handled by members’ votes.
- Taxation of Belize LLC. Due to the tiered system of taxation, shareholders of LLC: enjoy the following benefits:
- shareholders are exempt from local income tax and other fees
- they are not liable to pay capital gains tax, business tax, withholding tax, estate tax, gift tax, distribution tax, inheritance tax, estate tax on assets or income derived outside of Belize
- They are not subject to exchange controls and do not pay duties.
- Each member of an offshore LLC in Belize pays taxes on one’s assets, as a private person. The country of residence of each shareholder may be different, so it is impossible to apply the same rates for all.
- Asset protection is a key consideration when selecting a country for offshore company registration. Belize is the best choice, as its laws protect LLCs from the debts of LLC members, including credit debts. Besides, decisions of foreign courts may not be applied against a member or manager of a limited liability company in Belize.
- Confidentiality – personal information about the beneficial owners of Belize LLCs is kept private. The organization’s charter is the only document that the LLC is required to file with the Registry.
- Re-domiciliation of Belize LLCs is permitted, which is stipulated by the International Limited Liability Companies Act, 2011 (Part 11 and Part 12). LLC can move to Belize from other jurisdictions and vice versa.
- Simplicity and flexibility of business arrangements – there is no obligation for Belize LLCs to maintain annual reports and appoint auditors. But they are required to submit to the Register the company address and the registered name according to the International Limited Liability Companies (Registration) Regulations 2012.
- Minimal requirements for LLCs’ economic substance in Belize. They are not obliged to submit financial reports. They are not subject to local taxes or filing annual tax returns. They are not required to hold annual meetings in Belize.
Please note: if an LLC receives revenues from Belizean citizens/companies, it automatically becomes a tax resident of Belize (with all relevant liabilities and restrictions)!
Requirements for LLC formation in Belize
When you apply for registration of a Belize LLC, you need to meet the following requirements:
- The name of the LLC needs to reflect the nature of the business structure; abbreviations (L. L. C or LLC) are allowed. Certain words in the name are not allowed – any words related to banking, insurance, securities services, trade, and cooperative activities.
- A Belize LLC needs to have a local office and address, as well as a registered agent licensed by IFSC to incorporate and provide management services in accordance with the provisions of the IFSC Act.
- The structure of an offshore LLC needs to include at least one member and a manager, which can be non-resident (a private person or a legal entity).
- Belize LLCs are not obliged to have a secretary.
- Tax Liabilities of a Belize LLC: no local taxes are due if profits are derived from foreign sources, and all board members are non-residents of Belize. There is no obligation for tax declaration of worldwide income, but it is necessary to pay the state fee for business renewal and registration.
- Accounting records and reporting of Belize LLCs are not required. The company can keep records of documents abroad.
We can help you open your LLC’s account in Belize with any financial institution: banks, payment systems, neobanks.
Limitations of Belize LLCs
Under the Belize International Companies Act 2011, LLCs are prohibited to do the following:
- receive profits from Belize residents
- own real estate as a sole owner
- own shares and other securities of any local company
- issue own stock, debentures, and securities in the name of a Belizean resident.
Some restrictions may be critically important for you. That is why we are ready to offer professional advice and help you with all practical arrangements.
Your Belize LLC formation can be done remotely. You need to take only 4 steps:
- Contact our experts at email@example.com
- Negotiate the list of services,
- Submit documents,
- Pay the service fee.
And then bingo: your offshore company’s papers will be ready very shortly.
Which taxes are payable by owners of Belize LLCs?
Belize LLCs are taxed only on its profits generated in the country of tax residency. This means that if the company does not make any income in Belize, it is not subject to taxation in Belize.
What’s the difference between Belize LLCs and IBCs?
An IBC is an international business entity that is required to prove its economic substance/real presence in Belize, pay taxes on local and worldwide profits, obtain a TIN, keep accounting records, and conduct audits.
LLC in Belize – is a limited liability company, with members not liable for the LLC’s obligations, as their liabilities are restricted by their shares. Such an offshore company is not required to report to Belize authorities, maintain accounting reports, and file returns. Such benefits are available ONLY if your LLS’s income does NOT come from local resources, residents, or local corporations in Belize. There may be other restrictions. That is why we recommend that you should seek trusted professional experts for practical advice on how to establish a successful LLC in Belize for your needs.
Do I have to travel to Belize for LLC formation?
No, you do not have to. You can register a Belize LLC through a trustee – a registered (licensed) local agent. The main arrangement will be to arrange a legal address and a physical office in Belize. Other matters, even the bank account, can be taken care of outside Belize.
How do I start an LLC in Belize?
A Belize LLC is registered in 2023 with the help of a registered agent who will need to get all the documents related to the business founder and top management. You will also need to choose a servicing bank where you can open an account following company formation in Belize (you can select a bank in any country). The local office and the address for your LLC in Belize are usually provided by the registered agent. If you are going to open an offshore international structure that carries out its activities abroad and has no source of income in Belize, the company founder does not need to be present in person at the time of registration and afterward.
What are the benefits of an LLC in Belize?
Advantages of a Limited Liability Company (LLC) in Belize:
– all business participants are liable in proportion to the amount of their authorized capital
– An LLC in Belize that generates no profit in the country of incorporation does not pay any income tax, capital gains tax, gift tax, property tax, etc.
– The information about Belize LLC composition (founder and members) is kept in a closed register
– the international company has no obligation to submit an international financial report and organize meetings of directors / shareholders in Belize